St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-11-30
GONE TO The WALL.
Collapse Of a Noted Dry Goods Commits
sion Firm,
WHICH DID BIG BUSINESS,
Aggregating Many Millions Year---The
Reasons Assumed for the
Failure.
Special to the Globe.

Special to the Globe.
NEW YORK, NOV. 29.-The we'll known
firm of Brown, Wood d Kingman, dry
goods commission merchants of New
York, Boston, Philadelphia and Chi
cago, have gone into liquidation. The
firm was one of the leading houses of
the United States, doing a business of
S12,OO0,OOO to S14,000,O00 a year, con-
trolling many large mills, and was sup
posed to have abundant capital
for their immense trade. The principal
places of business of the firm were at 5S
Worth street, New York, and 81 Bed
ford street, Boston. They also had
stores in Philadelphia and Chicago.
Early in October rumOrS were circu-
lated in the trade in this city and Bos-
ton that the immense business of the
firm was feeling the effect of the
stringency in the money market. This
had the effect of unsettling their credit
in this market. On Oct. Is Mr.. Wood,
of the firm, made the following state
ment to Bradstreet'S: "Our liabilities
are in the shape of Endorsements, and
there is no paper out that is not per-
fectly good with our name on it. Dur
ing the past three months our indOrse-
nle1lIS nave Dteli ItuuCCu sl,UuU.UVU. dIlu
during the next three months
A FURTHER REDUCTION
of $4,000 600 will be made as compared
with the amount year ago." Shortly
after that date the firm gave up four of
its large mill accounts and let them
go to other houses. This increased the
rumOrS in the trade. These accounts
were the Arlington mills, dress goods;
Jane Phelps. Jr., woolens; Fitchburg,
worsted mills, and the ROyalstOn
Worsted company. 1t was reported in
the trade that when these accounts
were transferred the commits
sion houses who received them
accepted notes for them to the
extent of 81, 700, 900 and relieved the firm
of that amount of liability. 1t is said
that some of the firms paper recently
sold in Boston for 10 per cent. 1t was
placed principally by Boston firm and
it is stated that nearly every bank in
New England had some Of it. There
was meeting of the largest creditors of
the firm held in Boston about the middle
of November, it is said, before whom
the firm placed statement of their
condition showing liabilities Of $780,
900 and &sets of about S10,000,000. It
was understood at the time that
THE BOSTON BANKS,
who were the largest creditors, eX-
pressed their readiness to accommodate
the firm again by an extension of time,
if necessary. When the formal an
nOuncement was made to-day that the
firm would go into liquidation and give
up business, there was no surprise in
the trade, as it had already discounted
it by the prevailing reports in circula-
ton. w. J.. Brown, one Of the part
ners, said to-day that it was true
that the firm was liquidating,
that the entire business would be wound
up and that no new firm would be
formed. He thought it would
require some months to
close up. He said it was not true that
meeting of the creditors had been held
in Boston. The firm, he said. had about
s5,OO0,0O0 Endorsements while ago, but
a lerge part of the paper had been taken
up, and the rest would be taken care of
in few days. The firm, he said, were
perfectly solvent and would have large
surplus when the business was wound
up. The firm had done about $4,000
coo business year. They had given up
$5,000,0O0 of this business Il few weeks
ago, 4,000,000 had just gene. and the
balance of the accounts would be placed
i'll few days.